As the novel COVID-19 continues to damage the health and economy, many investors have to rethink their strategy when it comes to the price of gold going to record levels. Gold is usually seen as more of an investment as they have a higher retention and profit rate than a loss rate. However, the prices have gone up to some incredible levels in 2020 due to the pandemic.
In August of 2020, the per ounce price was risen up to $2000 for the first time ever in history. This has caused a riff in the market as the economy is shaken up by the coronavirus. Moreover, the demand of gold these days is also very high. Part of the reason of which is people want to invest their money safely due to the political uncertainty in the USA following the presidential elections. UBS has warned its clients to invest in safe haven assets such as gold in case the election leads to even more stock market volatility.
According to experts, humanity is about to peak the gold reserves in the world. With today’s increased demand, we may be exhausting the reserves of the commodity. Experts, with the help of statistics, have come to a conclusion that we are about to exhaust the gold reserves, sooner than we think. For this reason, gold mining was largely laid off to ensure the integrity. The gold extracting per ton in 2019 was 1 percent lower than 2018.
With newer gold reserves being discovered to this day, the production in older mines are still happening for decades. Take a look at the infographic below to see the largest gold mines in the world.
Infographic by: statista